January 25, 2021

Challenger for teens Step raises $50m in Series B

Step, a fintech designed for families and teens in the US, has raised $50 million in a Series B funding round.

Step has raised $76.3 million since 2018

Coatue led the round, which featured returning investors Stripe, Crosslink Capital, Collaborative Fund and Will Smith’s Dreamers VC.

Among new investors are Charli D’Amelio, Justin Timberlake, Eli Manning, and Mantis VC.

Step plans to “accelerate growth” and expand its team, which has doubled in size since the start of the pandemic.

“We’ve seen massive demand for this new type of all-in-one banking solution, making it much easier for teens to learn about money management,” says CJ MacDonald, CEO and founder of Step.

“We founded Step to help improve the financial future of the next generation. This investment not only validates what we’ve built, but it will also help us continue to innovate and grow with our users.”

FinTech Futures first reported on Step in May 2019. Founded in 2018, the firm has now raised $76.3 million over three funding rounds.

Step officially launched in October, and claims to have accrues more than 300,000 users. The firm offers a bank account, secured spending card backed by Visa, and a P2P payments platform.

Evolve Bank & Trust operated as the fintech’s banking partner.

Charli D’Amelio, a US-based social media personality and new investor, says the account makes it “easy to manage your money”.

She adds Step provides “educational resources that today’s teens need but have largely been unable to find”.

Related: US financial literacy app Jassby plans virtual debit card for kids